Metrolinx, the provincial transit authority in charge of numerous infrastructure projects around Toronto, has put Bombardier on notice that it plans to cancel a $770 million contract for LRVs to operate on the Eglinton Crosstown LRT route. The statement of intent follows a series of delays and manufacturing issues Bombardier has experienced in delivering a prototype model.

The Canadian transit and aerospace manufacturer has also failed to deliver the TTC its new low floor streetcars in a timely fashion, delays that surely play a role in Metrolinx's concern that the company won't be able to supply the Crosstown with vehicles in time for its launch.

For its part, Bombardier characterizes the notice of cancellation a normal part of the contractural process, and notes that manufacturing of LRV for the Crosstown isn't scheduled to begin until 2018 for the anticipated 2021 opening of the line. The line will require 76 vehicles on its opening date.

Metrolinx's notice to terminate the contract doesn't mean that it will ultimately follow through, but it does apply significant pressure on Bombardier, particularly given that the bidding for the contract to supply the Finch LRT line with vehicles has been opened up to other transit manufactures.

The question now is whether or not Bombardier can respond in such a way that restores confidence in its ability to fulfill the contract.

Photo by Radagast.